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Surging mining stocks end a slump on Wall Street

By Matthew Craft The Associated Press

Posted:
08/09/2013 12:01:00 AM MDT

NEW YORK — Miners and other companies dealing in commodities helped pull the stock market out of a three-day slump Thursday.

News that China's trade rebounded last month signaled the end of a six-month slowdown for the world's biggest buyer of raw materials. The report drove prices up for copper and other commodities, and that helped lift Newmont Mining, Freeport-McMoRan and other stocks in the materials industry.

"The one thing that stands out today is the better news out of China," said David Joy, chief market strategist at Ameriprise Financial. "It comes as a pleasant surprise."

With little other news to drive trading, the stock market had meandered lower this week. The S&P 500 index fell three days straight and remains down 0.7 for the week. It's still up 19 percent this year.

Brad McMillan, chief investment officer for Commonwealth Financial Network in Waltham, Mass., said a number of concerns have weighed on the market this week. Comments from Federal Reserve officials have convinced many investors that the bank will begin pulling back its support for the economy in the coming months.

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In an interview on CNBC after the market closed, Richard Fisher, head of the Fed's Dallas branch, reaffirmed his view that it's time to wind down the bank's stimulus effort.

At the same time, companies are warning of slower sales and turning in tepid second-quarter results. McMillan said it's starting to look like corporate earnings haven't kept up with the stock market's strong pace this year.

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